CH 23 - Additional Retirement Planning Issues Flashcards
When using the home as a financial asset the $250,000/$500,000 Home Exclusion applies to the clients ________ residence.
principal
How often can the $250,000/$500,000 Home Exclusion be used?
once every 2 years (with exceptions)
How long does the client have to own or use the home to qualify for the $250,000/$500,000 Home Exclusion?
Own and use home for 2 of 5 years
Age restricted housing generally offer _________ activities.
recreation/social
What type of housing does Age Restricted Communities offer?
single family homes/apartments/townhomes, etc.
What is the age requirement for Age Restricted Housing?
residents age 62+
Federal non-discrimination laws gives exceptions to Age Restricted Housing. What is the rule for ages 55?
- One resident in each home can be age 55 and
- 80% of total residents must be age 55 +
A reverse mortgage is considered a _________ loan.
non-recourse loan
What happens if the home value exceeds the reverse mortgage loan amount?
homeowner/heirs receive difference
What are the the tax implications to payments received due to a reverse mortgage?
payments are not taxed
What is the most common type of reverse mortgage arrangement?
HECM
The amount available for a reverse mortgage is based on ________, ________, and ________.
age
value of home
interest and fees
When does the bank get reimbursed for reverse mortgage payments?
at time of the sale of the home
What is covered under the following Medicare parts?
Part A = _________
Part B = _________
Part C = _________
Part D = _________
Part A = hospital coverAge
Part B = doctor’s Bills
Part C = managed Care alternative
Part D = self-administered prescription Drug
What is the age and status requirement for Medicare?
age 65 or disabled
Advance directive should be discussed with ________.
a doctor
Advance directives can be revoked and changed…
anytime.
What type of insurance is guaranteed renewable?
long-term care insurance
What is the different between the following long-term care policies cost?
indemnity policy = _________
reimbursement policy = _________
indemnity = policy pays actual daily benefit
reimbursement = pays actual cost up to daily limit
How is the inflation rate calculated into a long-term care policy?
The calculation might be under actual inflation rate or could use a specified rate like 5%.
Name the 6 ADLs.
Bathing
eating
dressing
Transferring from bed to chair
using the toilet
Continence
What are the eligibility requirements for long-term care insurance?
2 of 6 ADL
or
cognitive impairment
Who chooses the long-term care elimination/waiting period?
by the policyholder
What is the “maximum benefit” under a long-term care policy?
The maximum amount of the daily benefit.
What are TWO solutions to the pre-medicare and post-retirement health care gaps?
- continue coverage with the employer under COBRA for up to 18 months
- purchase an individual plan
How long is the enrollment period for Medigap after enrolling in Medicare Part B?
6 month enrollment period
What does it mean to say that all Medicare supplements are “standardized”?
All insurers sell the same polices.
What are SEVEN excluded procedures under Medicare Part B? (SHE-CLOD)
Self-administered drugs (which is actually covered by Part D)
Hearing aids
Eyeglasses
Cosmetic surgery
Long-term custodial care
Orthopedic shoes
Dental care
How much does Medicare Part B cover?
80% of physician and surgeon fees
Medicare Part B is based on a participants ________.
income
How much does it cost to enroll in Medicare Part A and Part B?
For those who are eligible (entitled to SS), Part A is FREE. Part B is available for a premium. If not eligible for both, you can purchase both.
